Korea's premium ice cream market has entered a contraction phase, but new franchise brands are increasing their entries. As the growth of industry leader Baskin-Robbins slows and Natuur scales back its operations, Hanwha Galleria is nurturing its own brand, "Benson," and U.S. premium ice cream brand Van Leeuwen has also recently entered the Korean market.
On the 9th, according to the Financial Supervisory Service's electronic disclosure system, BR Korea, which operates Baskin-Robbins, saw revenue fall from 712.6 billion won in 2024 to 707.6 billion won last year, and it continued to post losses following 2023. Natuur, operated by Lotte Wellfood, reduced its number of franchises from 34 in 2022 to 25 in 2023 and 19 in 2024. And in Mar., Lotte Wellfood withdrew its last company-run store. As of that day, eight franchises remain.
With the growth of incumbent leaders stalling, attention is turning to why new brands are rushing into the market. Industry watchers say they are investing in the "premium dessert market" rather than the ice cream market itself. The strategy is to cultivate ice cream as content that offers brand experiences and gourmet consumption, not as a seasonal item, to create new demand.
An industry official said, "Consumers have long viewed Baskin-Robbins as the standard for ice cream franchises," and noted, "Just as the coffee market diversified from instant coffee to specialty (high-quality) coffee, ice cream could evolve into a market that scrutinizes materials and supplies and quality."
Benson is adding stores in core commercial areas such as Apgujeong Rodeo in Seoul, Galleria Luxury Hall, and the 63 Building in Yeouido. It is targeting 30 stores this year and 100 by 2027.
A TWOSOME PLACE signed a master franchise (MF) agreement with Van Leeuwen early this year and opened the first store at Gangnam Station on the 3rd. It plans to open the second store at Shinsegae Department Store's Gangnam branch Sweet Park and the third near Sinnonhyeon Station in succession. Initially, it will focus on raising brand awareness rather than aggressively expanding the store network.
A Van Leeuwen official said, "Entering Korea reflects our focus on domestic consumers' demand for premium dessert experiences and the market's growth potential," adding, "Korea's ice cream market is already mature around mass brands, but we believe consumer preferences are becoming more segmented."
Another reason cited for investment is that premium ice cream is a business that sells not just products but also spaces and brand experiences. For department stores and malls, it can boost foot traffic, while operators can build fandoms through merchandise, collaborations, and social media (SNS) marketing.
Hanwha Galleria is developing Benson as a core brand of the lifestyle business led by Kim Dong-Sun, executive vice president overseeing future vision at Hanwha Hotels & Resorts, Hanwha Galleria, and Hanwha Vision. It has invested about 45 billion won to date, including equity contributions and lending, and is building its own production facilities.
The industry also believes there is room for expansion into channels such as broader retail distribution or B2B (business-to-business) transactions. The brand is already boosting recognition through collaborations with the Hanwha Eagles baseball team, girl groups Hearts2Hearts and NMIXX, and the summer event Waterbomb.
Still, the outlook is not uniformly bright. Premium ice cream faces structural constraints such as high materials and supplies costs, rent, and seasonality. In fact, premium ice cream prices are about 50% higher than existing products. The slowing growth of incumbent Baskin-Robbins and Natuur's downsizing demonstrate market saturation.
In the end, the industry sees the key to future success as whether new brands can create a new cohort of premium dessert consumers rather than waging zero-sum battles to poach existing customers. An industry official said, "Consumers are not yet highly aware of the materials and supplies or manufacturing methods of premium ice cream," and added, "With the arrival of new brands, it will be worth watching whether this becomes an opportunity to broaden the premium ice cream market itself."